UPDATE: Chile June Copper Output -0.6% On Year To 465,003 Tons

SANTIAGO, Jul 28, 2010 (Dow Jones Commodities News via Comtex) -- Chilean copper output inched down 0.6% in June from the same month a year ago to 465,003 metric tons from the 467,760 tons produced in June 2009, the government statistics agency said Wednesday.

In the first half of the year, Chile produced a total of 2,620,139 tons of copper, up 1.0% from the 2,594,160 tons it mined in January-June 2009.

Last year, Chile produced 5,408,561 tons, up 0.8% from 2008. That is equivalent to about 35% of global copper production.

The statistics institute, known by its Spanish acronym INE, said the slight decrease was due to equipment maintenance at one of the country's largest producers and to lower ore grades at several mines. It didn't specify the names of any of these copper producers.

The South American nation produces over a third of the world's annual copper supply.

The production of copper contained in concentrates fell 0.6% in June from a year earlier to 209,537 tons, the INE said. Output of copper cathodes dropped 2.7% to 224,906 tons, the institute said.

Cathodes, which are large sheets of 99.99% pure copper, have a higher added value than concentrates, as concentrates must be smelted or refined to get the purer form of the metal. The country also produces other forms of copper, such as blister, but in very small amounts.

Chile is the world's largest copper producer and also one of the leading molybdenum, iodine, lithium, gold and silver producers. The mining industry represents about 20% of the country's gross domestic product, according to the government's most recent data.

Molybdenum output in June totaled 3,378 tons, a 14.5% surge from the 2,949 tons it produced the same month a year ago.

First-half molybdenum output slipped 0.3% to 16,800 tons from the 16,855 tons produced in the first six months of 2009.

Iron ore production grew 3.7% from a year earlier to 715,882 tons in June, the INE said.

Unlike in previous months, the INE didn't provide gold or silver production. Both precious metals are often found as byproducts at many Chilean copper mining operations.